Investing.com - The U.S. dollar slid lower against its Canadian counterpart on Monday, as a rebound in oil prices boosted to the commodity-related Canadian currency, although demand for the greenback remained broadly supported.
USD/CAD hit 1.3687 during early U.S. trade, the pair’s lowest since February 18; the pair subsequently consolidated at 1.3698, sliding 0.47%.
The pair was likely to find support at 1.3648, the low of February 18 and resistance at 1.3899, the high of February 17.
The Canadian dollar found support as oil prices moved back above $33 a barrel on Monday, as supply glut concerns slightly eased.
But the greenback also remained underpinned after data on Friday showing that U.S. core inflation rose at the fastest rate in four years in January underlined expectations for further interest rates hikes by the Federal Reserve this year.
The loonie was sharply higher against the euro, with EUR/CAD tumbling 1.57% to 1.5084.
The euro weakened after research group Markit said that its Flash Euro Zone Composite Output Index, which measures the combined output of both the manufacturing and service sectors dropped from 53.6 in January to 53.0 in February, a 13-month low and below forecasts for 53.3.
The report came shprtly after data showing that French private sector activity slid into contraction territory last month, while business activity in Germany grew at the slowest pace in seven months.
The data added to pressure on the European Central Bank to step up measures to bolster growth in the region.